This law defines three key words used in a set of rules about sales commissions. A 'commission' is money paid to a salesperson based on a percentage or set amount of what they sell. A 'principal' is a business that makes or sells a product or service, hires someone to find buyers, and pays that person by commission. A 'sales representative' is a person or business hired by a principal to find buyers and get paid by commission, but does not include someone who buys products themselves to resell.
407.911. Definitions. — As used in sections 407.911 to 407.915, the following terms mean:
(1) "", to a for payment by a , the rate of which is expressed as a percentage of the dollar amount of s or sales, or as a specified amount per order or per sale;
(2) "Principal", a person, firm, , or other , whether or not it has a permanent or place of business in this state, and who:
(a) , produces, imports, provides, or a product or for sale;
(b) Contracts with a sales representative to for the product or service; and
(c) Compensates the sales representative, in whole or in part, by commission;
(3) "Sales representative", a person, firm, corporation, partnership, or other business entity who contracts with a principal to solicit orders and who is compensated, in whole or in part, by commission, but shall not include a person, firm, corporation, partnership, or other business entity who places orders or purchases for its own .
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Source & history notes
(L. 1989 S.B. 192 § 1 subsec. 1, A.L. 2005 S.B. 211)
Related Missouri laws
Violations
RSMo 407.910
Commission to become due, when
RSMo 407.912
Failure to pay sales representative commission, liability in civil action for actual damages
RSMo 407.913
Contracts, prior to August 13, 1984, not affected, exceptions
RSMo 407.908
Out-of-state principal with sales representative soliciting in this state, Missouri courts to have jurisdiction
RSMo 407.914
Waiver of proceeds in trust by artist, requirements
RSMo 407.907
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